Everything you
need to know

NNN properties span a wide range of retail and service categories: pharmacies (Walgreens, CVS), quick-service restaurants (McDonald's, Panera, Chick-fil-A), banks (Chase, Wells Fargo, Bank of America), dollar stores (Dollar General, Dollar Tree, Family Dollar), auto parts (AutoZone, O'Reilly, Advance Auto), convenience/fuel (7-Eleven, Casey's, Wawa), big-box retail (Walmart, Target, Home Depot), and many others. Almost all are occupied by recognizable national or regional brands.

Triple net properties are deliberately positioned on high-visibility, high-traffic corridors — the "main and main" intersections in major and secondary markets across the United States. Tenants like Walgreens and McDonald's conduct extensive demographic analysis before committing to a location. The result: NNN properties are almost always in exactly the kind of location that retains value across market cycles.

The NNN buyer universe spans high-net-worth individuals, family offices, 1031 exchange buyers transitioning from active real estate (apartments, retail centers, industrial), REITs, pension funds, and institutional allocators. Most NNN income properties are priced between $1,000,000 and $30,000,000. While institutions are active buyers, the majority of NNN properties are owned by private individuals — which is one reason this asset class remains accessible to individual accredited investors.

Not at all. While some NNN assets — flagship Walgreens or Walmart locations — trade at $8–$20M, there are strong NNN opportunities at $1–$3M, particularly in dollar stores, quick-service restaurants, and auto parts categories. An accredited investor with $500,000–$1,000,000 in equity (depending on leverage) can participate meaningfully in this asset class.

A capitalization rate (cap rate) is the property's net operating income divided by its purchase price — essentially the unlevered annual yield. Current NNN cap rates typically range from 5% to 7%, depending on tenant credit quality, remaining lease term, and location. Investment-grade tenants with long lease terms and strong locations trade at lower cap rates (higher prices) because of their superior risk profile. Higher-cap-rate assets may offer better initial yield with modestly higher risk.

Most NNN leases include scheduled rent escalations — typically either a fixed annual bump (1–2% per year) or CPI-linked increases at renewal. Some leases have flat rent through the primary term with significant bumps at option periods. Understanding the escalation structure is a critical part of evaluating any NNN acquisition — and one of the things we analyse carefully for every property we recommend.

Like any real estate, leverage amplifies both returns and risk. NNN properties are highly bankable — lenders are comfortable with long-term corporate leases as collateral. A property purchased at a 6% cap rate with 65% LTV financing at 6.5% interest may generate a 7–9% cash-on-cash return depending on the specific structure. We work with investors to model the right capital structure for their objectives.

An investment-grade tenant is a company with a credit rating of BBB- or higher from S&P (or Baa3 from Moody's). This rating reflects a strong probability of meeting financial obligations, including rent payments. Tenants like Walgreens (rated BBB), McDonald's (rated BBB+), and Dollar General (rated BBB) are investment-grade. Not all NNN tenants are rated, particularly franchisees — but strong franchisees with proven unit economics can represent excellent NNN investments even without a public credit rating.

A corporate guarantee means the parent company (e.g., McDonald's Corporation) is the lease signatory — their full balance sheet backs the lease. A franchise guarantee means an independent franchisee is the signatory, with the brand as a franchisor (not guarantor). Corporate leases carry lower risk; franchise leases may offer higher yields. Both can be excellent investments — the key is understanding the specific franchisee's financial strength and track record, which is part of our diligence process.

The ideal NNN lease features: a primary term of 10+ years remaining, scheduled rent escalations, multiple 5-year renewal options, an absolute NNN maintenance obligation (tenant responsible for all costs), no co-tenancy clauses, and a corporate or credit-worthy franchise guarantee. We review every lease provision — landlord obligations, termination rights, assignment clauses, and early termination penalties — before recommending any property to a client.

Most NNN tenants renew — particularly those in strong-performing locations, which are exactly the properties we target. At renewal, you typically have the opportunity to negotiate to market rent. If a tenant does vacate, the property's location quality is what drives re-leasing success, which is why location analysis is as important as tenant credit in our acquisition evaluation.

Absolutely — and NNN properties are among the most popular 1031 replacement properties precisely because they close efficiently. NNN sellers typically maintain complete due diligence packages, closings are streamlined, and our process routinely closes in under 60 days from contract — well within the 180-day exchange window. The 45-day identification deadline is very achievable when you have a broker who is ready to move the day your clock starts.

Two critical deadlines: (1) You must identify up to three potential replacement properties in writing within 45 days of closing your relinquished property. (2) You must close on your replacement property within 180 days of closing your relinquished property. These clocks cannot be extended — which is why engaging us as early as possible in your sale process (ideally before you go to contract) gives us maximum runway to identify the right NNN replacement property.

Yes. You can exchange one property into multiple replacement properties, or multiple properties into one. Exchanging a single large asset (such as an apartment building) into several smaller NNN properties is a popular estate planning strategy — it creates discrete, easily transferable income streams that can be allocated to individual heirs with clarity and simplicity.

From executing a purchase contract to closing, a typical NNN acquisition takes 45–75 days. Due diligence periods are typically 30–45 days, followed by a 15–30 day closing period. For 1031 exchange buyers, we engineer the process to close well within the 180-day window. The key is being fully prepared — attorney engaged, financing lined up, and due diligence providers ready — before the contract is signed.

Comprehensive NNN due diligence includes: tenant financials (store-level and corporate), title report and commitment, ALTA survey, Phase I Environmental Site Assessment, building/engineering report, estoppel certificate, certificate of occupancy, tax certificate, property insurance review, construction warranties, and loan documents if financing. We coordinate the entire process and make sure everything is reviewed and approved before your due diligence period expires — no surprises at closing.

We are exclusive buyer's brokers. Our fiduciary duty is entirely to you — the purchaser. We do not represent sellers, we do not take listing commissions, and we do not recommend properties because we have a financial incentive to sell them. We have been doing this since 1993. Our track record of closed transactions with specific institutional sellers gives our Letters of Intent a credibility that first-time and infrequent buyers simply cannot match. Sellers know we close.

Contact us through our contact page. Tell us your investment budget, any yield objectives or timeline requirements (especially if you have an active 1031 exchange), and any tenant or geography preferences. We will prepare a curated list of available NNN properties that match your criteria and schedule a conversation to walk through the options. There is no cost or obligation to begin the conversation.